IRVING, Texas – Fluor Corp. (NYSE: FLR) and China National Offshore Oil Corp. subsidiary Offshore Oil Engineering Co. Ltd. have agreed to form a new joint venture, COOEC Fluor Heavy Industries Co. Ltd., through which the two companies will own, operate, and manage the Zhuhai Fabrication Yard in China’s Guangdong province.
As part of the joint venture, Fluor will make two stages of investments: an initial cash investment of $350 million after all regulatory approvals are received, which is targeted for late 2015, and a $139-million investment in 3Q 2016. Fluor will hold 49% of the joint venture, with COOEC holding 51%.
At 2 million sq m (21.6 million sq ft), the yard can accommodate fabrication modules weighing more than 50,000 tons.
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